AeroVironment’s SEC Filings Allegedly Used Generic Risk Warnings While Executives Privately Knew the $1.7 Billion SCAR Contract Faced Imminent Termination

NEW YORK, June 10, 2026 /PRNewswire/ — Levi & Korsinsky, LLP examines the adequacy of AeroVironment, Inc.’s (NASDAQ: AVAV) risk disclosures during a period when shareholders lost significant share value. A securities class action has been filed on behalf of investors who purchased AVAV securities between June 25, 2025 and March 10, 2026. Find out if you qualify to recover losses from inadequate disclosures. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

AVAV shares declined $13.84 per share to $207.73, a 6.24% collapse, after AeroVironment confirmed the termination of the Company’s contract concerning the SCAR program. AVAV shares had already faltered $61.97 after the Company had first announced the program was paused and a further $43.93 following Space Force’s announcement of a “new acquisition strategy for SCAR.” The lead plaintiff deadline is July 27, 2026.

What the Company Disclosed

After the January 20, 2026 stop work order, AeroVironment’s Form 8-K stated the order “allows for the parties to negotiate an amended agreement for the future of the SCAR program.” The Company added that it “expects to continue to deliver capabilities and products for the SCAR program.” On March 3, 2026, AeroVironment issued a press release asserting it was “confident in its ability to successfully deliver our systems ahead of competitors.”

These disclosures framed the stop work order as a routine contract renegotiation rather than a fundamental threat to the Company’s largest revenue pipeline.

What the Complaint Challenges as Missing

The securities action contends AeroVironment’s disclosures omitted critical information that would have changed the risk calculus for investors:

• The U.S. Space Force was actively reassessing its single-vendor acquisition strategy in favor of multi-vendor, commercial off-the-shelf solutions
• The Company’s “shoulder-to-shoulder” relationship with its customer had not prevented a strategic pivot away from AeroVironment’s bespoke BADGER system
• Approximately $1.5 billion of AeroVironment’s $3 billion unfunded backlog was tied to the at-risk SCAR program
• The stop work order was not merely a pause for contract amendment but a precursor to full termination for convenience
• Item 303 of SEC Regulation S-K required disclosure of known trends or uncertainties reasonably likely to have a material unfavorable impact on revenues

Why Generic Warnings Allegedly Did Not Protect Investors

The complaint charges that AeroVironment violated Item 303 of Regulation S-K (17 C.F.R. § 229.303(b)(2)(ii)), which mandates disclosure of “known trends or uncertainties” reasonably likely to materially affect revenues. Rather than disclose specific, actionable intelligence about the Space Force’s shifting procurement philosophy, the Company allegedly substituted reassuring language about continued negotiations and competitive confidence. As pleaded in the action, boilerplate language about contract risks cannot substitute for disclosing that the customer was already pursuing a fundamentally different acquisition model.

“Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company’s operations. When a company’s largest contract is under active threat, investors deserve more than vague assurances about ongoing negotiations,” stated Joseph E. Levi, Esq.

Speak with an attorney about whether AeroVironment’s disclosures met legal standards or call (212) 363-7500.

LEAD PLAINTIFF DEADLINE: July 27, 2026

Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.

Frequently Asked Questions About the AVAV Lawsuit

Q: What specific misstatements does the AVAV lawsuit allege? A: The complaint alleges AeroVironment made materially false or misleading statements regarding the stability and future of the $1.7 billion SCAR contract, characterizing it as a key growth driver while the U.S. Space Force was reassessing its single-vendor acquisition strategy. When the true state was revealed through three corrective disclosures, the stock price declined sharply.

Q: When did AeroVironment allegedly mislead investors? A: The class period runs from June 25, 2025 to March 10, 2026. The alleged fraud was revealed through corrective disclosures on January 20, March 2, and March 10, 2026, causing cumulative stock declines of approximately 47%.

Q: What do AVAV investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my AVAV shares? Can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: Can I join a different law firm’s lawsuit instead? A: Multiple firms often file competing complaints. The court consolidates and appoints a single lead counsel. Contacting Levi & Korsinsky before July 27, 2026 ensures your losses are considered.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP